VirnetX's Apple Victory Might Be Just The Beginning

Shares of VirnetX Holding Corporation (NYSE: VHC<) have rallied about 50 percent during Thursday's trading session following confirmation of a $625.6 million verdict against Apple Inc. AAPL.

At least two sell-side analyst have gotten excited amid the news: Cowen's Robert Stone and James Medvedeff.

In a research note Thursday morning, the analysts posited, "this news should aid the process of signing licenses with others which were underway with IPVALUE."

"We believe that a number of engagements have been underway with Android OEMs and infrastructure players. However, it seems unlikely that any were closed in Q4 pending the determination of royalty amounts in the Apple case. We expect that the first couple of contracts could be signed in the coming months," according to the Cowen analysts.

Cowen holds an Outperform rating and $36 price target on shares of VirnetX.

With the stock's last trade at $7.43 Thursday afternoon, the Cowen price target implies potential upside of nearly 400 percent from current levels.